VW reaches deal with 80,000 US 3-litre vehicle owners
British consumer confidence fell this month to its lowest level since the immediate aftermath of the EU referendum, crimped by worries around rising inflation pressures, a WASHINGTON: A federal judge survey showed on Friday. said that Volkswagen AG has reached
Pollster YouGov and the Centre an agreement in principle to provide for Economics and Business Research “substantial compensation” to the (Cebr) said their gauge of consumer owners of about 80,000 3.0-litre morale fell by one point to 108.1 in polluting diesel vehicles, a key hurdle December, the lowest level since July. to resolve the German automaker’s
The survey found a sizeable drop-off emissions scandal. in optimism about household finances US District Judge Charles Breyer on over the coming 12 months, with Thursday did not disclose the amount inflation set to rise sharply. of owner compensation, which is not
“The slow creep of inflation is included in a $1 billion settlement starting to be both seen in the economy announced earlier this week between at large and felt in consumers’ wallets VW and US regulators. Half of the throughout the country,” Scott Corfe, largely weathered the initial Brexit compensation will be paid at the time director at Cebr, said. shock better than many economists had Breyer gives final approval of the
“Despite things being better than expected. settlement. Some fixes for the 3.0 litres many expected, looking ahead to 2017 But a rise in inflation next year is may not approved until 2018, Breyer there is a feeling that a slight slowdown likely to strain the spending power said. is on the way.” of households who have driven the Earlier this week, Volkswagen
The YouGov/Cebr report chimed recovery in the economy since the reached the $1 billion settlement with as federal and state regulators over is also expected to back the deal, Breyer said.withaseparatesurveybyGfKonfinancialcrisisof2007-09.USregulators,offeringtobuybackpollutingdieselvehiclesinadditionto Thursday which showed a deterioration Britain’s inflation rate in the 12 about 20,000 of the vehicles, fix the compensation for the 3.0-litre owners. Volkswagen, the world’s No 2 in consumers’ outlook for 2017, despite months to November stood at 1.2 remaining 60,000 and pay $225 million Volkswagen spokeswoman Jeannine automaker, could still spend billions morale improving overall. per cent and the Bank of England has into an environmental trust fund to Ginivan said the automaker was pleased of dollars more to resolve a US Justice
Sterling has fallen more than 10 per previously said it expects it to peak at offset the vehicles’ excess emissions. with the agreement in principle, but said Department criminal investigation and cent against the dollar since June’s EU 2.8 per cent in early 2018. The settlement covered luxury details will remain confidential for now. federal and state environmental claims referendum and while some retailers The BoE is prepared to let inflation VW, Audi and Porsche vehicles with Breyer said the final agreement must and come under oversight by a federal have raised prices already, others are run above its 2 per cent target in 2017 3.0-litre engines. With the agreement, be filed with the court by January 31, monitor. It is possible a deal could be expected to wait until after the highly but there are limits to tolerating the Volkswagen would spend as much as and he expects to hold a February 14 reached before the end of the Obama competitive holiday season. overshoot, Governor Mark Carney has $17.5 billion in the United States to hearing to approve the deal. administration, said sources briefed on
So far, the British economy said. resolve claims from owners as well The US Federal Trade Commission the matter. has